Understanding SSDI Back Pay
If you’ve recently been approved for Social Security Disability Insurance (SSDI) benefits or are in the process of applying, you might have heard about something called “SSDI back pay.”
Back pay is one of the most important parts of your SSDI claim. It provides financial compensation for the time you waited for the SSA to approve your benefits – and sometimes that can be a very long wait, so a lot of compensation.
Understanding how back pay works and how it’s calculated can help you plan your finances and make sure you receive everything you’re owed.
What Is SSDI Back Pay?
SSDI back pay is the amount of money the Social Security Administration (SSA) owes you from the time your disability began to the time your benefits are approved.
Because SSDI claims can take months or even years to process, back pay makes sure you get compensation for the time you were eligible for benefits but didn’t receive them – usually due to the lengthy application or appeals process.
How Is Back Pay Calculated?
The SSA calculates back pay using two key dates:
1. Your Established Onset Date (EOD)
This is the date the SSA determines your disability began. This may be earlier than the date you applied, depending on the evidence in your medical records.
2. Your Application Date
Let’s say your disability began before you applied and you met all the other SSDI eligibility requirements at the time. You can receive back pay for up to 12 months prior to your application date.
Once the SSA calculates your EOD and considers the date you applied, they factor in a five-month waiting period for all SSDI claims. This means you won’t receive benefits for the first five full months after your EOD, even if they approve your claim.
Example of Back Pay Calculation
Let’s say you applied for SSDI on January 1, 2024, and the SSA determines your EOD is July 1, 2023. Here’s how your back pay would be calculated:
- Your five-month waiting period would run from July to November 2023.
- You may be eligible for back pay starting in December 2023, covering the months leading up to your approval.
If your claim is approved in January 2025, you’d receive back pay for December 2023 through January 2025.
How Is Back Pay Paid?
SSDI back pay is typically paid as a lump sum. Once they approve your claim, the SSA will issue your back pay directly to your bank account via direct deposit.
In rare cases, if the back pay amount is very large, the SSA might split it into multiple payments over a few months.
If you’re working with a lawyer, their fee comes out of the back pay you’re owed. This is a small fraction set by law, and the SSA pays them directly.
Keep in mind that this process can take far longer than many of us would like. While back pay can provide much-needed financial relief, it isn’t always issued immediately after your approval. The SSA sometimes takes months to process back pay.
How an SSDI Lawyer Can Help
Navigating the SSDI process, including back pay calculations, can be complicated. An experienced SSDI lawyer can make all the difference.
Firstly, we make sure your EOD is correct. We’ll work with you to gather the medical evidence needed to establish the earliest possible onset date for your disability, maximizing your back pay.
In addition, we handle your appeals. The SSA denies the majority of applications on their first try. If the SSA denies your claim, we’ll guide you through the appeals process to get your benefits and back pay.
And lastly, if you experience errors in your back pay, we’ll work with the SSA to fix the mistakes and get you the correct benefits asap.
Working with Our Award-Winning SSDI Team
As a Memphis SSDI lawyer, I understand how important back pay is for individuals and families waiting for benefits. Our firm is committed to helping you get the financial support you deserve as quickly and efficiently as possible.
For decades, we’ve helped the people of Memphis get the benefits they need and deserve. We communicate every step of the way, and we’ve won multiple awards for client satisfaction.
If and when we win your case, we only get paid a small fraction of your past-due benefits, or back pay. You keep most of it and every dollar moving forward.
If you have questions about back pay or need help with your SSDI claim, contact us today for a free consultation. Let us help you navigate the process and get the benefits you need.